Zimkap

I actually thought about leaving it in and offset future deposits but did not think that would fly. Much easier to do that Thank you very much Lou!

Have a client plan, 5 life case, Deferrals with basic Safe Harbor Match, so no testing, there are no automatic contributions, no profit sharing contributions. Employee made Roth deferrals and did not exceed the 402(g) limit, when the client uploaded the final payroll deferrals for 12/31/2022 instead of entering $4,500 they entered $5,500 for this employee therefore submitting $1,000 more then they should have. W2 box 12 reflects the correct Roth deferral for the year. From what I have read about using "mistake of fact" the $1,000 would be considered a typographical error and therefore the money can be returned to the Employer Was just looking to see if anyone has any additional thoughts or has used mistake of fact for return of erroneous contributions Michele

I just responded to another post about these DOL emails it is under the discussion titled "DOL Email Regarding Missing 5500"

I called EFAST when I received the first email of this type. They answered just short of saying they are testing a new system. They did say that it is not a notice of late filing, it is a reminder to file with options available to do so. In my case the client already filed, the agent even confirmed that the form was received in good order but asked that I still email back a responce with the ACK#. To me it feels like a new system is being tested.

It is never easy when a client receives a notice, but when it happens and they call me I explain the issue and response to the letter. Very few of my clients call accusing us of miss handling the filing of their forms. With this disaster relief a multitude of my clients have received a CP283 Notice assessing major penalties, and with that IRS letter Notice 1155-G is included which explains how disaster relief is given. All the 5500's were filed with the special extension box checked with state disaster FEMA# and an additional attachment to be safe, and penalty letters were still sent out. Clearly the clients are in a panic. So last week I spoke with the IRS, after 4 hours on hold, was told their system was not set to catch addresses within individual state or counties of states given relief under Hurricane IDA or for that matter many of the other disaster declarations announced in these past few months. Their advise fax or mail a response and the penalty should be abated if in fact the address on the 5500 is in a FEMA declared covered area. Response letters have been faxed to the IRS and now we wait, I have asked my clients to be patient since the IRS is quite backed up with their responses. What a mess.

Thank you very much!

Looking at a possible takeover plan.... it is a Profit Sharing Plan no deferrals comingled asset account. The plan was always valued on December 31 and document reflects that. However in early 2020 due to the major decrease in assets, the plan was run quarterly 3/31/2020 so participant distributions would reflect the reduced assets rather than paying out the 12/31/2019 account balances. The prior servicer never ran the rest of the quarters for 2020 and instead ran the 12/31/2020 report for the period 4/1/2020-12/31/2020. Document was never amended to reflect the change to quarterly. This is the first time I have seen this situation, what are the implications for not valuing the all the quarters for 2020 and going back to annual? and what about the lack of amendment to quarterly? Any help is appreciated

Yes I have received many of these emails, both for client that already filed and for clients that have not filed yet but will by February 15th

I did provide an "other attachment" with every filing, since I was effected as well as my clients. Also had spoken to the IRS when the first extension was granted to confirm that this type of attachment would help. Will keep trying to call, since sending them a list of the many clients receiving the notice would absolutely be better then individual responses. Just makes me crazy since this extension was suppose to be helpful to us that were effected and all it has done is add more work.

Not sure if others have had the IRS send their clients penalty notices for late filing under the IDA extension but my clients have received them even though their address is in a covered area. Of course the letter states to call the IRS but trying to reach them by phone is impossible, has anyone been successful in faxing a response to IRS?

Okay, thank you!!!

The announcement did not mention the 5500 specifically, hope that they end up stating that as well.

WCC, Thank you very much! They just have to wait till after 2/20/2022 which is when the 12 month period ends

Have a client who had to wind down his business, terminated the firms PS/401(k) plan (5 people if that matters) in 2020, last distribution was made 2/19/2021 and a final form has been filed. This was not related to Covid Business has started to come around, owner is in his 70's and one employee still works for him that was a participant in the terminated plan, age late 60's. Now they would like to adopt a Profit Sharing Plan for 2021, assume no deferrals at least not for now, would this violate the Successor Plan rule? Have never been presented with this situation. Any help is appreciated